Mirae Asset MF Launches Two New ETFs Tracking BSE Indices
The two new exchange-traded funds (ETFs) have been launched by Mirae Asset Mutual Fund. The purpose of launching these funds is to track particular BSE indices and deliver investors a diversified method of equity investment. The funds are meant to provide investors with a passive form of investment, enabling them to access a huge portfolio of stocks while avoiding active decision-making.
Mirae Asset BSE 200 Equal Weight ETF
One of the recently introduced ETFs is to track the performance of the BSE 200 Equal Weight Index after adjusting for tracking errors. This ETF follows an equal-weight strategy. This means that every stock in the index will get the same share of investment. It is not the same as the market cap-weighted indices, where bigger companies have more influence. With the help of this approach, the risk is spread more evenly across all stocks.
This open-ended scheme falls under the category of other ETFs and offers investors the opportunity to invest with a minimum of Rs.5,000 as an initial investment. Investments can be made in increments of Rs.1 after the initial investment. Following an index with diversified components, this ETF will try to deliver diversified exposure to various sectors with minimal reliance on large-cap stocks. The NFO period will end on March 5, 2025.
Mirae Asset BSE Select IPO ETF
The other fund follows the BSE Select IPO ETF, which consists of the newly listed companies. The goal is to provide similar returns to the index, but the chances of some differences are still there. The investors get an opportunity to invest in newly listed stocks, mostly having high growth potential.
Like the BSE 200 Equal Weight ETF, this open-ended fund comes in the Other ETFs category. Investors can invest a minimum amount of Rs.5,000, with further investments permitted in multiples of Rs.1. The ETF is a chance to invest in companies that are coming out when they list soon after, which could be an opportunity for investors interested in profiting from early market movements. This fund will close on 5th March 2025 for subscription.
The BSE Select IPO Index, which includes the newly listed companies, is followed by this fund. Its goal is to provide returns similar to the index; there can be small differences, though. The ETF lets the investors invest in the listed stocks, which mostly have chances of high growth.
Investors can start their investment with the amount of Rs.5000 and later can add more on multiples of Rs.1. In this ETF, people can invest in companies soon after they get listed, which can be a good chance to benefit from the early market changes. The NFO for this ETF will close on March 5, 2025.
Many NFOs are now available, which offer different investment options. These include funds for gold, stock market indexes, mid-cap companies, financial services, commodities and momentum financial services. Those investors who want less risk can go for these funds to build a balanced portfolio that matches their goals.
ETFs are becoming more popular among investors as they are low-cost and easy to use. The launch of these funds provides both small and large investors access to different parts of the market.
